New Delhi, (APAC Media): The Indian rupee fell to a record low near 95 against the U.S. dollar on Monday, raising mounting pressure on the domestic unit despite recent intervention measures by the Reserve Bank of India (RBI).
The RBI had introduced limits on banks’ dollar positions to boost the supply of the U.S. currency and curb speculative activity.
However, the steps failed to stabilise the rupee as global and domestic headwinds intensified.
Heavy foreign capital outflows remained a key factor. Overseas investors withdrew more than Rs 1.14 lakh crore from Indian markets in March, reflecting rising risk aversion and weakening confidence in emerging markets amid global uncertainty.
At the same time, escalating geopolitical tensions in the Middle East drove crude oil prices above $100 per barrel. Higher oil prices have increased India’s import bill, widened the trade deficit and raised demand for dollars, further pressuring the rupee.
Finance Minister Nirmala Sitharaman addressed the issue in Parliament, stating that “our rupee is running fine.” The remarks triggered criticism online, with commentators pointing to her earlier concerns about currency depreciation and questioning the government’s messaging.
Analysts said the rupee’s outlook will depend largely on global oil price trends, capital flows, and potential further intervention by the RBI. They added that unless external conditions improve and inflows return, the currency is likely to remain under pressure in the near term, with volatility expected to persist across financial markets.
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